The average rental price for a newly let property in the UK has increased as Bolton has seen a strong demand for rental accommodation.

The average UK rent stands at £1,201 per month, marking a 9.7 per cent increase compared to a year ago, according to Zoopla’s December report.

But there are signs that the UK is now past peak growth in rental prices, meaning there will be a slowdown in rent price increases, according to an index.

Northern England locations such as Manchester, Derby, and Newcastle are also seeing strong demand for rented accommodation, and greater room for rents to increase relative to earnings, the report added.

Zoopla expects annual UK rental prices growth to halve to five per cent by December 2024 with growth in London of 2 per cent – the lowest level since 2021.

Zoopla’s index uses asking rents, but the figures are adjusted to reflect rental prices achieved.

Richard Donnell, executive director at Zoopla said: “The UK is past peak rental growth, which will be welcome news to renters who have seen rents rise by almost a third (31 per cent) over the last three years.

“London will lead the slowdown, acting as a drag on the UK growth rate.

“The rental market has been stuck in a period of static supply and strong demand which has pushed rents higher.

“Demand has been driven by the strength of the labour market, the reopening of the economy after the pandemic lockdowns, record immigration and higher mortgage rates, making it harder for would-be first-time buyers to buy a home.

“Faster growth in earnings has supported a faster pace of rental growth.

“The supply-demand imbalance in rented housing is not going to disappear in 2024, however, the market is set to become more balanced than it has been over the last three years.

“The slowdown in rental growth over 2024 will be down to a weaker labour market, slower earnings growth and growing affordability pressures limiting the pace at which rents can rise, particularly in southern England.

“Rents have room to rise above the UK average in regional cities where affordability is less of a constraint, but this won’t be the case indefinitely.”

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